Broker and investment dealer GMP Capital Inc. (TSX:GMP) posts a net loss of $4.6 million in the third quarter as revenues fell by more than half and the company booked a one time charge on its books.
GMP said Friday it lost nine cents a share in the third quarter ended Sept. 30, reversing a net profit of $23.1 million or 32 cents a year earlier.
Revenues fell 55% to $46.3 million from $102.8 million, reflecting a tough business and capital market environment.
Third quarter results were also hit by a $5 million pre-tax charge from a previously announced executive management retirement.
Stock markets tumbled in the third quarter as investors worried about the European debt crisis, and the weakening U.S. and Chinese economies.
For GMP, that cut demand by companies to list their shares on the stock market and affected demand for other services the company provides.
CEO Harris Fricker said the third quarter financials were “disappointing results for the firm.”
“Global economic uncertainty intensified this quarter resulting in a significant contraction in overall business activity in our capital markets segment,” he said.
“Heightened equity market volatility together with declining global equity market valuations and lower investor confidence resulted in weaker investment banking revenue, unrealized losses in principal activities and reduced trading volumes.”